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Is bond signing legal if not what action can i take
22-Nov-2023 (In Corporate Law)
I had joined a private company 2 and half month ago. I signed a bond with them for 1 year, stating that if I leave a job before that then I will have to pay 60000 rs. Now I have stopped going to office since 2 weeks, because I dont want to continue. Now today I have received an HR notice stating that either I come to office or pay them 60000rs within three days. Please tell me that, am I enforced to work there or to pay the money? I have only earned 24000rs so far and they have given me only work related small training. Please reply, as its very urgent.
Prima facie, the concept of employment bonds is not enforceable under Indian laws. As per court ruling in many recent cases, employment bonds for the purpose of restraining an employee from pursuing other avenues is not enforceable.
Employers can only uphold any bond only if they can demonstrate that they have spent tangible money in order to train an employee for a special skill and that losing they have not been able to monetise such trained skill of the employee. The employer has to further demonstrate that without the training and the money being spent on the employee, the employee could not have acquired the skills/talent. Also, that the amount written in the bond does notatter. The employer can only claim the amount which they have actually spent on training.
In your case, if there is no special training you have undergone, you have neither been sent to any client site nor have you been assigned to a project which will fail and employer will lose renevue if you leave, your employer cannot enforce the bond. However, if the employment contract required you to serve certain days of notice before you can leave, the employee can enforce such clause and you may be required to serve the notice period.
Employers can only uphold any bond only if they can demonstrate that they have spent tangible money in order to train an employee for a special skill and that losing they have not been able to monetise such trained skill of the employee. The employer has to further demonstrate that without the training and the money being spent on the employee, the employee could not have acquired the skills/talent. Also, that the amount written in the bond does notatter. The employer can only claim the amount which they have actually spent on training.
In your case, if there is no special training you have undergone, you have neither been sent to any client site nor have you been assigned to a project which will fail and employer will lose renevue if you leave, your employer cannot enforce the bond. However, if the employment contract required you to serve certain days of notice before you can leave, the employee can enforce such clause and you may be required to serve the notice period.
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Adv. Kritika Srinivasan
Gurgaon | 25+ Answers
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In the event you have executed a contract under which the company says you can not leave the company, then terms of such agreement/bind need to be examined before any specific advice may be given. In any case you must contact some expert lawyer with copy of the said agreement/bond. Usually training agreements can be enforced, where employee has been trained by employer.
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Adv. Vivek Nasa
Gurgaon | 200+ Answers
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